Sogecable Consolidated results as of September 30th 2007

Tuesday, October 16th, 2007
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  • Sogecable achieved record high third quarter turnover with revenues of 359.8 million euros. New record high third quarter subscriber revenues amounting to 260.2 million euros were recorded.
  • As of September 30th 2007, Sogecable’s EBITDA amounted to 247.0 million euros, an increase of 93.8 million euros on the EBITDA recorded for the first nine months of 2006. These figures represent a 61.2% year-on-year increase and show EBITDA growth in both pay television and free-to-air television activities.
  • As of September 30th 2007, cumulative net profit amounted to 50.3 million euros compared to the loss of 25.9 million euros recorded for the first nine months of 2006.
  • DIGITAL+ had a subscriber base of 2,046,000 customers as of September 30th 2007, representing subscriber growth of 40,000 in the last twelve months and a net drop of 10,000 subscribers in the quarter.
  • In the quarter, the average revenue per customer reached 41.4 euros in comparison to 41.3 euros recorded in the third quarter of 2006.
  • Cuatro’s audience ratings continued to show a very positive trend. In September 2007, it had an average monthly audience share (24 hours) of 7.2%, and the average audience ratings for the programmes released in the new season exceeded the channel’s average share.

The headlines of DIGITAL+ in the third quarter of 2007 were as follows:

  • DIGITAL+ subscriber base was 2,046,000 customers as of September 30th 2007. This represents a net growth of 40,000 in the last twelve months and a net drop of 10,000 subscribers in the quarter.
  • The cancellation rate stood at 11.8% as of September 30th 2007, compared to 11.7% twelve months ago.
  • In the quarter, the average revenue per customer reached 41.4 euros in comparison to 41.3 euros recorded in the third quarter of 2006.
  • In the quarter DIGITAL+ launched i+, the most advanced PVR decoder, available for the first time in Spain and exclusively on DIGITAL+.
  • Next quarter, the new triple play service TRIO+, resulting from agreements between Telefónica and Sogecable, will be available on the Spanish market.
  • In the quarter, commercial evolution was negatively affected by the actions of third parties, who prevented DIGITAL+ from exploiting its football broadcasting rights. On October 8th 2007, the court handed down a ruling in AVS’s favour, guaranteeing the company the peaceful enjoyment of its rights. Sogecable holds an 80% stake in AVS.

Subscriber evolution

As of September 30th 2007, the subscriber base of DIGITAL+ stood at 2,046,000 customers. At the end of the previous quarter, as of June 30th 2007, DIGITAL+ had 2,056,000 customers. DIGITAL+’s customer base decreased by 10,000 subscribers in the third quarter of 2007.

Contents and services update

During the third quarter of 2007, DIGITAL+ continued to expand the range of contents and services offered to its clients.

In this respect, on September 25th 2007, Sogecable launched iPLUS, the most advanced PVR decoder, which is available for the first time in Spain and exclusively to DIGITAL+ subscribers. iPLUS allows up to eighty hours of programming storage, is fully integrated with DIGITAL+’s improved programming guide (EPG), provides access to Digital Terrestrial Television (TDT) and features high-definition broadcasting. This decoder can be acquired by request and requires the return of the traditional apparatus and the payment of an initial amount in addition to a monthly fee.

Additionally, next quarter Sogecable and Telefónica will start distributing triple play service TRIO+, which combines Telefónica’s ADSL and Voice services with DIGITAL+’s satellite pay-television. As stated when the agreement was announced on June 27th 2007, each company will invoice its products in TRIO+ and installation/customer assistance services will continue to be offered separately. Both companies will offer TRIO+ to their current customers and will combine the commercial capacity of their distribution channels to attract new customers.

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